Steel Corporation of the Philippines Facing Liquidation Proceedings

It’s final, the court already decided to place the Steel Corporation of the Philippines (SCP) under liquidation proceedings. It seems that all hopes are gone because of the swift ruling by Judge Ruben Galvez of the Batangas City Regional Trial Court (RTC) Branch-3. This resulted to a walk-out by SCP’s legal counsels in protest to the unjust ruling. In which the court responded by immediately holding an election to select the Board of Liquidation members.

Steel Corporation of the Philippines

Atty. Nonnatus Chua, an SCP counsel, stated that the decision is questionable because legalities such as prejudicial issues are still hanging.

“We have several prejudicial issues which must be resolved first. In the case of liquidation, it must come after the order of such liquidation becomes final. After approval of the rehabilitation plan by the lower court, the remedy is Rule 65 and a Motion for Reconsideration… we still have 15 days to file MR but the court did not take this into consideration,” Chua explained.

Moreover, Chua said the court has yet to clarify the confusion regarding the classification of creditors.

Aside from Banco De Oro (BDO), there are other creditor banks which has loaned SCP like Planters Bank, Chinabank, Land Bank of the Philippines at DEG (Deutsche Investitions-und Entwicklungsgesellschaft).

All banks enumerated are “secured creditors.” However, while the court hearing was being held, some of the lawyers of the said banks appealed as to how and why they were classified as “unsecured creditors.”

He also said that classification of creditors was not accurate. How can we say that the decision is impartial when there was a clear inaccuracy done in the classification from the beginning. Mandatory requisites must be followed to have justly proceedings.

He also noted that there is a big difference on the rights and responsibilities between a “secured” at “unsecured” creditor thus it is very important to determine their correct classification.

SCP is the only 100% Filipino-owned steel company in the country.

The lawyers of SCP have filed a number of Motion for Reconsideration (MR) but they felt that they have not received proper attention and consideration from the court. They are also asking Judge Galvez to inhibit from the case if he has delicadeza. They can’t figure out why the judge denied their motion to suspend the liquidation for the meantime. Why deny it as soon as it was served, without studying it. It’s as if this is already well planned and decided.

Let’s just hope that the SCP lawyers don’t give up that easily, or the company will no longer see the light.

Read my other posts related to SCP to fully understand what’s happening.

Thoughts on the Philippines Sinking Steel Corporation

SCP Employees to Judge Ruben Galvez: How Much?

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